Dayton, Ohio -- I'm amazed at the number of solicitation letters I get that begin, "Dear Mr. Tim Bete." That's as friendly as a letter from the IRS. Use "Dear Mr. Bete" or even "Dear Tim." Act like you know your donors. If your database can't handle different salutations, fix it or find another database.
Also, don't use "Dear friend..." when addressing donors. You're supposed to know them and be in an ongoing relationship with them. If you don't know someone's name, it's difficult to say that you're their friend.
Tuesday, September 29, 2009
Sunday, September 27, 2009
Realize where your profit lies
Dayton, Ohio -- Don't expect fundraising prospect mailings to make money. Fundraising prospect mailings are designed to attract new donors and usually break even at best. The real payoff is acquiring new donors who give regularly. You may get only a 1% response to a prospect mailing. But when you mail to those new donors in the future, you may get a 25% response, which is VERY profitable.
When considering response rates, you also have to evaluate average gift size. If your average gift is $25, you have to get a much higher response rate than if your average gift is $100. Many companies selling high-end products find a 0.25% response acceptable.
When considering response rates, you also have to evaluate average gift size. If your average gift is $25, you have to get a much higher response rate than if your average gift is $100. Many companies selling high-end products find a 0.25% response acceptable.
Friday, September 25, 2009
Why a donor communication plan is critical
Dayton, OH -- A national donor survey performed by Cygnus Applied Research found that 46% of donors said they stop giving because of insufficient or poor quality information about what their gifts were accomplishing (see the book Donor Centered Fundraising: How to hold on to your donors and raise much more money by Penelope Burk.)
The Cygnus research also found that donors don't make a decision to give when you mail them a solicitation. They make the decision between when they make their last gift and when you solicit them the next time. During that period, donors want three things:
(1) A prompt, personalized acknowledgement of their gift
(2) Confirmation that their gift is being put toward what they requested
(3) Measurable results that their gift accomplished its goal BEFORE they are asked for another contribution
While direct mail fundraising is important, it is only one part of a larger donor communication process -- a process that needs to create an integrated, ongoing conversation with donors. You need to create a written plan showing how, when and what you will communicate with donors.
You need to think about your direct mail solicitations, newsletters, annual reports, thank-you letters and event invitations as a single donor communication program. You can't do that without a written plan.
The Cygnus research also found that donors don't make a decision to give when you mail them a solicitation. They make the decision between when they make their last gift and when you solicit them the next time. During that period, donors want three things:
(1) A prompt, personalized acknowledgement of their gift
(2) Confirmation that their gift is being put toward what they requested
(3) Measurable results that their gift accomplished its goal BEFORE they are asked for another contribution
While direct mail fundraising is important, it is only one part of a larger donor communication process -- a process that needs to create an integrated, ongoing conversation with donors. You need to create a written plan showing how, when and what you will communicate with donors.
You need to think about your direct mail solicitations, newsletters, annual reports, thank-you letters and event invitations as a single donor communication program. You can't do that without a written plan.
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